Oil Prices Dip as Hormuz Flows Recover but Saudi Attacks Raise Risks
Oil prices dipped early Tuesday as crude flows from the Middle East Gulf region showed signs of recovery, easing some supply concerns. However, ongoing security risks in the region tempered the decline. International benchmark Brent crude futures for December delivery fell 0.5% to $99.83 per barrel, while US benchmark West Texas Intermediate (WTI) crude futures for November delivery dropped 0.7% to $88.77 per barrel.
Despite threats from Iranian Parliament Speaker Mohammad Bagher Ghalibaf that the Strait of Hormuz would remain closed until seven conditions were met, data from maritime intelligence firm Kpler showed that oil exports continued through the strategic waterway and alternative routes. Between September 1 and 28, the region exported 16.5 million barrels per day, matching pre-war averages.
The G7's decision to release 100 million barrels of crude and diesel from emergency reserves over four months added downward pressure on prices. This move was in response to surging prices and growing volatility in global energy markets. Meanwhile, attacks by Yemen’s Houthi group on Saudi targets, including airports and an oil facility, raised geopolitical risks, limiting the decline in oil prices.
The latest attacks came as talks between the United States and Iran remained stalled, keeping tensions elevated across the Gulf. The Houthi group claimed to have targeted multiple sites in Saudi Arabia, including King Khalid International Airport, an Aramco refinery, and Abha Airport, using ballistic and cruise missiles and drones.